0
0
Recently, Rep. Jeb Hensarling (R-TX), Chairman of the House Financial Services Committee, announced that his Committee will hold new hearings to discuss the provision of the amended CHOICE (Creating Hope and Opportunity for Investors, Consumers, and Entrepreneurs). You can’t make this stuff up!
The new version, known as CHOICE 2.0 is intended to replace the controversial Dodd-Frank Act and reshape the structure and authority of the CFPB. Take a look at the highlights.
The bill, among other things, aims at defanging the CFPB by removing its enforcement and rule-making authority.
Also introduced by Representative Blaine Luetkemeyer (R-MO), is the Community Lending Enhancement and Regulatory Relief Act (CLEARR). You gotta love these acronyms!
CLEARR is aimed at benefiting smaller lending institutions. This Act would also amend ECOA and the Fair Housing Act policies barring disparate impact claims. Maybe, it will make things a little more clear (pun intended) to lenders.
At present, the chances of either bill making it all the way through into law are extremely slim. If they pass the House, there is a major uphill battle in the Senate. But, help may be on the horizon.
On Thursday (4/27), Steven Mnuchin, Secretary of the Department of the Treasury, declared his support for the CHOICE Act. He stated that “(he) welcomes the Financial CHOICE Act regulatory reforms…”. Mnuchin added that he and the Treasury Department are continuing their review of the regulatory systems under the President’s direction.
Mnuchin said that the existing regulatory system is limiting, not stimulating, the economy. Change is needed to encourage banks to provide needed capital to create jobs and economic growth. Could that indicate a change to Dodd-Frank and the CFPB?
In a separate statement, Senate Banking Committee Chairman Mike Crapo, mentioned that although regulatory reform may be tough, he sees an opportunity for change through housing reform. Much of the change may come from GSE reform.
Senator Crapo stated that housing finance is a high priority for his committee and the new administration, with support from both parties. Seems there may be more than one way to skin this cat. (Remember no animals are ever harmed in connection with my blog posts.)
So, it appears there still may be hope for some Dodd-Frank and CFPB reforms that would help financial institutions by reducing regulatory burdens and oversight. Although, such reforms may come through a different door (or via a different cat).
As always, I strongly recommend you get involved and make your voice heard on these issues. It’s your industry and your future. Who better to speak to it than you?
Make your choices clear to those who make a difference.
